Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Shares

Question:

Based on following passage answer questions below
A Ltd with an Authorised Capital of 10,00,000 is divided into shares of ₹10 each, issued 50,000 shares at a premium of ₹2 per share payable as follows
on Application ₹3 per share
on Allotment ₹5 per share (including premium)
on First and Final call Balance amount

Application were received for 60,000 shares and the directors allotted shares to all on proportionate basis. All money received except first and final call from Hari who had applied for 1200 shares. His shares were forfeited and later half of his forfeited shares were reissued at 8 per share as fully paid up.

Identify the number of shares with which A ltd is registered.

Options:

1,00,000 Shares

50,000 Shares

60,000 Shares

10,00,000 Shares

Correct Answer:

1,00,000 Shares

Explanation:

A Ltd with an Authorised Capital of 10,00,000 is divided into shares of ₹10 each
Authorised shares = 1000000/10
                              = 100000